<p class="bodytext">The cut in the price of cooking gas cylinders by Rs 200 is welcome at a time when there is an all-round increase in prices. The price of Rs 1,100 for a domestic LPG cylinder until this week, nearly double of what it was three years ago, had put gas cylinders beyond the reach of many people, especially Ujjwala beneficiaries. The price cut has been described as a Raksha Bandhan gift. But when the gift wrapper is removed, there is a political message that seeks votes in return. Assembly elections are to be held in five states this year and general elections are due next year. The high price of LPG cylinders and the general price rise that has affected all commodities could be a major campaign point that could go against the BJP. The cut in LPG price is meant to control the damage. </p>.LPG price cut | Modi government slashes LPG prices by ₹200 per cylinder.<p class="bodytext">The Narendra Modi government had pushed up the price consumers paid for a domestic LPG cylinder from about Rs 450 in 2014 to over Rs 1,100. During 2021, the rates were increased almost every month, with February alone that year witnessing three hikes. It was priced at more than its actual cost; the government has now only cut a portion of its profit. A cut in LPG price to Rs 500 is a major promise made by the Congress in the states going to elections. The Modi government had to make a big gesture to counter it. All the defences that it had mounted for relentlessly hiking the prices have now withered away. It is estimated that the cut in LPG price would lead to a reduction of 30 basis points in the consumer price index (CPI), resulting in a slight fall in the inflation rate in September. </p>.<p class="bodytext">The reduction in LPG price will shift focus to the continuing high prices of petrol and diesel which are difficult to justify now. Much of India’s crude imports are from Russia now and Russian crude, since the Ukraine war, is much cheaper than the Gulf crude. But the price benefit has not been passed on to consumers. Petrol, diesel prices may also be reduced in the coming days – another ‘gift’ in view of the coming elections. There could be other measures, too. Prime Minister Modi criticises opposition parties for offering ‘freebies’ to voters. Is not the reduction in LPG prices a ‘freebie’, especially when it is described as a ‘gift’. Indeed, how has the language of ‘gift’ crept into a decision of the Government of India? Is this ‘gift’ being given out of somebody’s pocket? Why are such ‘gifts’ only given ahead of elections? Why are ‘freebies’ right when the government gives them? The most important question is how the voters will respond to the message.</p>
<p class="bodytext">The cut in the price of cooking gas cylinders by Rs 200 is welcome at a time when there is an all-round increase in prices. The price of Rs 1,100 for a domestic LPG cylinder until this week, nearly double of what it was three years ago, had put gas cylinders beyond the reach of many people, especially Ujjwala beneficiaries. The price cut has been described as a Raksha Bandhan gift. But when the gift wrapper is removed, there is a political message that seeks votes in return. Assembly elections are to be held in five states this year and general elections are due next year. The high price of LPG cylinders and the general price rise that has affected all commodities could be a major campaign point that could go against the BJP. The cut in LPG price is meant to control the damage. </p>.LPG price cut | Modi government slashes LPG prices by ₹200 per cylinder.<p class="bodytext">The Narendra Modi government had pushed up the price consumers paid for a domestic LPG cylinder from about Rs 450 in 2014 to over Rs 1,100. During 2021, the rates were increased almost every month, with February alone that year witnessing three hikes. It was priced at more than its actual cost; the government has now only cut a portion of its profit. A cut in LPG price to Rs 500 is a major promise made by the Congress in the states going to elections. The Modi government had to make a big gesture to counter it. All the defences that it had mounted for relentlessly hiking the prices have now withered away. It is estimated that the cut in LPG price would lead to a reduction of 30 basis points in the consumer price index (CPI), resulting in a slight fall in the inflation rate in September. </p>.<p class="bodytext">The reduction in LPG price will shift focus to the continuing high prices of petrol and diesel which are difficult to justify now. Much of India’s crude imports are from Russia now and Russian crude, since the Ukraine war, is much cheaper than the Gulf crude. But the price benefit has not been passed on to consumers. Petrol, diesel prices may also be reduced in the coming days – another ‘gift’ in view of the coming elections. There could be other measures, too. Prime Minister Modi criticises opposition parties for offering ‘freebies’ to voters. Is not the reduction in LPG prices a ‘freebie’, especially when it is described as a ‘gift’. Indeed, how has the language of ‘gift’ crept into a decision of the Government of India? Is this ‘gift’ being given out of somebody’s pocket? Why are such ‘gifts’ only given ahead of elections? Why are ‘freebies’ right when the government gives them? The most important question is how the voters will respond to the message.</p>
